Govt expects economy to grow 5.1 to 5.2 percent in Q3

Coordinating Economic Minister Darmin Nasution addresses the press after a limited meeting with President Joko Widodo and Vice President Jusuf Kalla in Jakarta on Oct. 22, 2015. (The Jakarta Post/wienda parwitasari)

The government expects the economy to grow 5.1 to 5.2 percent year-on-year (yoy) in the third quarter of the year, slightly higher than the central banka��s estimated 5 percent.

“It grew 4.9 percent in the first quarter and 5.18 percent in the second quarter. We estimate 5.1 to 5.2 percent growth in the third quarter,” Coordinating Economic Minister Darmin Nasution said in Jakarta on Monday.

Earlier, Bank Indonesia predicted that economic growth in the third quarter was unlikely to be as high as previously expected due weak major economic indicators such as consumption, investment, government spending and exports.

Although consumption improved and private investment remained strong in the third quarter, the limited fiscal stimulus was in line with adjustments to government spending in the second half.

With these developments, the central bank estimated overall economic growth for 2016 would be at the lower range of 4.9 to 5.3 percent yoy. (ags)